1Lecturer, University of Sialkot, 1-Km Main Daska Rd, Sialkot, Punjab
2Research Scholar, University of Management and Technology, Lahore, Block C-II Phase 1 Johar Town, Lahore, Punjab
3Research Scholar, Hailey College of Commerce, University of the Punjab, Punjab University, Haily Bridge, New Campus, Lahore, Punjab
*Corresponding Author: Sayyed Khawar Abbas Research Scholar, Hailey College of Commerce, University of the Punjab, Punjab University, Hailey Bridge New Campus, Lahore, Punjab Email: sayyedkhawarabbas@gmail.com
Online published on 1 November, 2018.
The purpose of this study is to shed light on the relationshipbetween ownership concentration, corporate governance andfirm performance.
To conduct research, 60 non-financial firms, listed at Pakistan Stock Exchange are selected and data is extracted from the yearly reports during the period of 2011 to 2016. Firm performance is measured by two indicators. One is market based performance measure that is Q ratio or Tobin's Q and other isROA i-e Return on Asset which is accounting based measure, Ownership Concentration is measured through the percentage of largest shareholders/total number of share and Corporate governance is measured through sixdifferent indicators i.e. Managerial Ownership, Board Diversity, Auditors’ Reputation, Board independence and Board size. Panel data is used to estimate the model.
Study reveal that ownership concentration is negatively associated with Tobins'q. Similarly, board diversity and leverage is negatively related with Tobins'q but managerial ownership, auditors’ reputation, board size, board independence and firm size has sanguine effect on market based performance indicator i-e Tobins'q. In second model, ownership concentration, managerial ownership, board diversity, auditors’ reputation, board independence and leverage is positively linked with return on assets whereas, board size and firm size is negatively linked with ROA. Results are consistent with previous findings.
Corporate governance, Ownership Concentration, Performance, Managerial Ownership, Board Diversity, Auditors’ Reputation, Board independence, Board size
